Calendar No. 490
107th Congress Report
SENATE
2d Session 107-208
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INTELLIGENCE AUTHORIZATION ACT FOR FY 2003
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July 9, 2002.--Ordered to be printed
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Mr. Levin, from the Committee on Armed Services, submitted the
following
R E P O R T
[To accompany S. 2506]
The Committee on Armed Services, to which was referred the
bill (S. 2506) to authorize appropriations for Fiscal Year 2003
for intelligence and intelligence-related activities of the
United States Government, the Community Management Account, and
the Central Intelligence Agency Retirement and Disability
System, and for other purposes, having considered the same,
reports favorably thereon with amendments and recommends that
the bill as amended do pass.
PURPOSE OF THE BILL
S. 2506 would authorize appropriations and other matters
for Fiscal Year 2003 for intelligence activities of the United
States, including certain Department of Defense intelligence-
related activities within the jurisdiction of the Senate Armed
Services Committee.
The Senate Select Committee on Intelligence reported the
bill on May 13, 2002, and it was referred to the Committee on
Armed Services in accordance with section 3(b) of Senate
Resolution 400, 94th Congress.
SCOPE OF THE COMMITTEE REVIEW
The committee has carefully reviewed the report of the
Select Committee on Intelligence (S. Rept. 107-149) and has
incorporated the relevant budget recommendations of the Senate
Select Committee on Intelligence with modifications into S.
2514, the National Defense Authorization Act for Fiscal Year
2003, which the Senate passed on June 27, 2002.
The following explains the committee's proposed amendment
to the bill as reported by the Senate Select Committee on
Intelligence, as well as the committee's clarification to the
report issued by the Senate Select Committee on Intelligence.
Classified annex to the committee report
The committee has prepared a classified annex to this
report that describes other recommendations and concerns that
are classified in nature.
Preparation and submittal of reports, reviews, studies and plans
relating to Department of Defense and Department of Energy
intelligence activities
S. 2506, with its associated report (S. Rept. 107-149) and
classified annex, contains numerous provisions requiring the
preparation and submission of various reports, reviews, studies
and plans concerning all facets of U.S. intelligence
activities. Many of these reporting requirements include all,
or elements of, Department of Defense and Department of Energy
intelligence-related activities over which the Senate Select
Committee on Intelligence and Armed Services Committee share
oversight. The committee believes that all relevant oversight
committees should receive these important reports, and that the
Department of Defense and the Department of Energy should be
consulted in conducting and preparing such reports, reviews,
studies and plans that involve intelligence-related activities
within these respective organizations. The committee's proposed
amendment to S. 2506, as reported by the Senate Select
Committee on Intelligence, would clarify the requirement for
consultation with appropriate defense and energy officials and
ensure that all relevant oversight committees are recipients of
information on activities within their respective
jurisdictions.
Standards and qualifications for the performance of intelligence
activities
Section 308 of S. 2506 would clarify the role of the
Director of Central Intelligence, as head of the Intelligence
Community, as the official responsible for prescribing common
standards and qualifications for individuals performing
intelligence functions throughout the Community.
The committee's proposed amendment would modify section 308
to clarify that the Director should prescribe such standards
inconsultation with those agencies whose responsibility it is to
establish standards.
Modification of David L. Boren National Security Education Program
Section 309 of S. 2506 would dramatically alter the
purpose, scope and operation of the National Security Education
Program (NSEP). The committee is concerned that insufficient
consideration has been given to the views of the President,
National Defense University, the Secretary of Defense's
designee to oversee NSEP and to chair the National Security
Education Board. The committee is also concerned that taking
action at this point in time, without the careful review and
analysis that this important subject deserves, would be
premature. The committee recommends that the conferees on this
bill consider the alternative of requiring the Secretary of
Defense, in consultation with the Director of Central
Intelligence, to conduct a study of the program and to report
to the relevant congressional committees as to whether the NSEP
is meeting its goals; whether any component of the program
should be cancelled or changed; what the benefits and drawbacks
are of the National Foreign Language Initiative; and whether
the responsibility for the program should be transferred from
the Secretary of Defense to the Director of Central
Intelligence.
Regardless of the outcome of that issue, the committee
believes that a report on conversion of funding from trust fund
to annual appropriations should consider the advisability of
such action. Accordingly, the committee's recommended amendment
to subsection (f) of section 309 would require the Secretary of
Defense, in consultation with the Director of Central
Intelligence, to report on the advisability of conversion of
funding from the National Security Education Trust Fund to
funding through annual appropriations.
Annual report on improvement of financial statements of certain
elements of the Intelligence Community for auditing purposes
Section 414 of S. 2506 would require an annual report
describing activities undertaken by the Central Intelligence
Agency, National Security Agency, Defense Intelligence Agency
and National Imagery and Mapping Agency to ensure that agency
financial statements can be audited in accordance with Office
of Management and Budget requirements. The committee supports
efforts designed to improve the financial management of the
defense intelligence agencies.
At the same time, the committee recognizes that the
financial management systems of the defense intelligence
agencies are integrally linked to the financial management
systems of the Department of Defense and cannot be addressed in
isolation. On March 6, 2002, the DOD Comptroller testified
before the Readiness Subcommittee of the Armed Services
Committee that the root causes of DOD's financial management
problems are ``(1) the uncontrolled proliferation of antiquated
and stand alone financial management systems; and (2) the
inefficient business processes that they support.''
To address these root causes, DOD has initiated an effort
to develop an enterprise architecture to support modernization
of financial management systems and business processes. The
Comptroller General of the United States testified that DOD
should limit spending on new business data systems until this
new enterprise architecture for financial management has been
approved.
Section 1006 of S. 2514 would require the Secretary of
Defense to develop a comprehensive enterprise architecture by
March 2003 for all budgetary, accounting, finance and data
systems of the Department of Defense, and would require that
all financial system upgrades be made in compliance with the
new architecture. The committee expects the Secretary of
Defense to ensure that the defense intelligence agencies comply
with the requirements of section 1006 of S. 2514.
National Commission for Review of the Research and Development Programs
of the United States Intelligence Community
Title VI of S. 2506 would establish a National Commission
for Review of the Research and Development Programs of the
United States Intelligence Community. Section 602 of S. 2506
would establish the composition of the Commission to include 11
members.
The committee believes that the research and development
programs within the Department of Defense make a significant
contribution to the efforts of the Intelligence Community.
Specifically, it would be difficult for the Commission to
conduct a thorough review of research and development that
contribute to the Intelligence Community programs without
considering the programs funded and managed by the Department
of Defense.
Therefore, the committee's recommended amendment would
modify section 602 to add a twelfth member to the Commission,
and to identify that member as a senior intelligence official
from the Office of the Secretary of Defense, to be designated
by the Secretary of Defense.
COMMITTEE ACTION
In accordance with the Legislative Reorganization Act of
1946, as amended by the Legislative Reorganization Act of 1970,
the committee approved a motion to report favorably to the
Senate S. 2506, with amendments.
FISCAL DATA
The committee will publish in the Congressional Record
information on five-year cost projections when such information
is received from the Congressional Budget Office.
REGULATORY IMPACT
Paragraph 11(b) of rule XXVI of the Standing Rules of the
Senate requires that a report on the regulatory impact of a
bill be included in the report on the bill. The committee finds
that there is no regulatory impact in the cost of S. 2506.
CHANGES IN EXISTING LAW
Pursuant to the provisions of paragraph 12 of rule XXVI of
the Standing Rules of the Senate, the changes in existing law
made by certain portions of the bill have not been shown in
this section of the report because, in the opinion of the
Committee, it is necessary to dispense with showing such
changes in order to expedite the business of the Senate and
reduce the expenditure of funds.
